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2 shares of “strong buy” cents that can rise more than 100%
Bank of America has a strong reputation for keeping its finger on the pulse of the financial world – and one of its main tools is the Global Fund Manager Survey, conducted monthly and seeking the opinion of more than 200 hedge funds, mutual funds and fund managers. pension funds that hold a total of $ 645 billion in AUM. It is the largest regularly conducted survey of its kind. And BofA’s latest findings show that Big Money is feeling confident. More than 90% of investors surveyed believe that 2021 will show a significant recovery from 2020, that asset allocations for stocks and commodities are at their highest level in 10 years and there is a general belief that global growth is at a historic peak. So there is a general consensus that now is the time to invest. The only question that remains is: invest in what? Wall Street professionals argue that there are early-stage companies that reflect promising opportunities, with low stock prices meaning you get significantly more return on your investment. Furthermore, even what appears to be a lower appreciation of stock prices can result in massive percentage gains. The end result? Not all risks are created equal. For this, the professionals recommend to do some steps before making an investment decision. With that in mind, we use the TipRanks database to find attractive stocks at bargain prices. The platform led us to two tickers with stock prices below $ 5 and consensus ratings of “strong buy” from the analyst community. Not to mention that the potential for substantial appreciation is on the table. ObsEva SA (OBSV) First up is a biopharmaceutical company with clinical status with a strong focus on women’s health. ObsEva is working to develop and commercialize new therapies for women’s reproductive health problems – up to and including pregnancy. The company’s main candidate drug, linzagolix (branded Yselty), is an orally administered GnRH receptor antagonist that completed two Phase 3 studies, PRIMROSE 1 in the USA and PRIMROSE 2 in the USA and Europe. Clinical trials involved 574 and 535 patients, respectively, and used doses of 100 mg or 200 mg to treat heavy menstrual bleeding associated with uterine fibroids. The results of both studies were positive, supporting the favorable safety and efficacy profile of Linzagolix. In an update announced last month, ObsEva reported that, according to the results of Phase 3, the European Medicines Agency (EMA) validated the company’s Marketing Authorization Application (MAA) for review for Yselty (100mg and 200mg). Potential MAA approval is anticipated in the fourth quarter: 21. The drug is also scheduled to be the subject of a new drug order (NDA) that is due to be submitted to the FDA in the second quarter. With shares changing hands for $ 3.80 each, Wedbush analyst Liana Moussatos sees an attractive entry point for investors. “In our opinion, Linzagolix has the potential to achieve the best oral GnRH receptor antagonist status based on a flexible dosing regimen with or without additional hormone therapy (ABT) – a key differentiator from other GnRH receptor antagonists. … Based on the positive results of the primary endpoint PRIMROSE 1 and PRIMROSE 2 for YSELTY® / UF and additional follow-up data, we project annual sales of more than $ 750 million in 2027 for Linzagolix / UF ”, said Moussatos. To this end, Moussatos evaluates OBSV as a purchase along with a target price of $ 28. If his thesis is successful, a potential 12-month gain of ~ 643% can be considered. (To see Moussatos’ history, click here.) Overall, ObsEva impressed its observers, as shown by Strong Buy’s unanimous consensus rating on the shares, based on 3 recent Buy reviews. With a potential return of 342%, the consensus target price of the stock is $ 16.67. (See OBSV’s stock analysis at TipRanks) BELLUS Health (BLU) The second action we are examining, BELLUS Health, is also a biopharmaceutical research company at the clinical stage – but the focus here is on a problem that few of us think of . Hypersensitivity – the state of being highly, or even excessively, sensitive to environmental or foreign stimuli – can cause a variety of conditions, from chronic coughing to severe disorders. Sometimes, the less severe chronic symptoms can be the worst. Chronic cough and chronic itching (itchy skin) are mild to moderate symptoms that can be triggered by a number of factors – but when symptoms do not go away, they can have a disproportionately negative impact on quality of life. The main drug candidate for BELLUS, BLU-5937, is in studies of its effectiveness in treating these symptoms. BLU-5937 is a highly selective PsX3 antagonist, acting on the P2X3 receptor in the cough reflex pathway. The current clinical trial is a Phase 2b study, the follow-up to the Phase 2 RELIEF trial. The RELIEF study involved 68 patients in the USA and the UK, of which 52 completed two test periods. The study showed a statistically significant reduction in cough count in patients with a higher baseline count. Phase 2b studies are now enrolling and dosing patients, with interim results expected by mid-year and first-line results expected to be published in the fourth quarter. Praising the name of the healthcare area is RBC Capital analyst Gregory Renza. “With a clinically successful P2X3 antagonistgefaxipant (MRK) MOA, we believe that the high selectivity of BLU-5937 could lead to minimal flavor effects and lead to greater patient compliance and preference than gefapixant, where, in if successful, we estimate revenues as early as possible at 2024, with peak global sales potential of more than $ 900 million in RCC, with increased potential label expansion in indications related to P2X3 hypersensitivity, ”noted Renza. “Despite the PE failure of the ph.II trial in RCC, we believe that the significant reduction in the frequency of awake cough in patients with elevated baseline has demonstrated POC and viability of the asset.” It should come as no surprise, then, that Renza joined the bulls. Along with an Outperform rating, the analyst gives the stock a target price of $ 8. This target conveys his confidence in the BLU’s ability to increase approximately 116% over the next twelve months. (To follow Renza’s history, click here) Moving now to the rest of the street, other analysts also like what they are seeing. With 3 purchases and no waiting or selling, the word on the street is that BLU is a strong buy. At $ 8.67, the average target price indicates an upside potential of ~ 134%. (See the BLU stock analysis at TipRanks) To find good ideas for trading low-cost stocks with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all of TipRanks stock insights. Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investment.